With fewer larger banks unwilling to purchase troubled banks, the FDIC is now looking to private investors to bail out these banks. Private investors recently extended funds to CIT Bank to keep it from bankruptcy filings.

The involvement of private investors would relieve the U.S. of their intervention in some of the failed banks earlier in this economic crisis. Warren Buffet recently made a statement that the U.S. “must address the massive amounts of monetary medicine that have been pumped into the financial system and now pose threats to the world’s largest economy and its currency.”

The federal deficit reached an all-time monthly high of $180.7 billion for the month of July 2009.